Vietcombank sees 47% rise in Jan-Sep pre-tax profit

As of September 30, state-run Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank)`s total assets were valued at VND995.11 trillion (US$42.47 billion), down 3.9% compared to the beginning of the year.

In the first nine months of 2018, Vietcombank, Vietnam's largest lender by market value, posted a pre-tax profit of VND11.68 trillion (US$498.73 million), up 47% year-on-year, according to the lender's quarterly consolidated financial statement. 

Additionally, the bank's revenue during the period reached VND16.68 trillion (US$712.06 milillion), up 34% year-on-year, leading to a profit before provisions for credit risks of VND11.68 trillion (US$489.54 million), up 47% year-on-year. 

During the July - September period, the Hanoi-based lender posted a pre-tax profit of VND3.66 trillion (US$156.26 million), up 37% year-on-year. 

The result was partly thanks to the bank's core business line of credit-investment with revenue of VND20.42 trillion (US$871.89 million) in the January - September period, up 26% year-on-year, while net revenues from services reached VND2.62 trillion (US$111.86 million), up 34% year-on-year.

Meanwhile, revenue from other activities amounted to VND3.03 trillion (US$129.36 million), doubling the figure recorded in the same period last year, and trading of foreign currencies brought VND1.6 trillion (US$68.31 million), down 6%.

In this period, trading securities posted revenue at VND316 billion (US$13.49 million), down 19% year-on-year. 

As of September 30, Vietcombank's total assets were valued at VND995.11 trillion (US$42.47 billion), down 3.9% compared to the beginning of the year. 

The lender's current outstanding loans stood at VND627.95 trillion (US$26.8 billion), up 15.6% against the beginning of the year. Bad debt accounted for 1.18% of the total loans.

The bank's equity as of September 30 climbed 17% compared to the beginning of the year to VND61.52 trillion (US$2.6 billion). Customers' deposits at the bank amounted to VND773.4 trillion (US$33.01 billion), in which 28% were demand deposits.

Regional cooperation as key to boost Asian economies: ADB

“Enhanced regional cooperation and coordination can help countries manage regional issues, particularly if they complement national and global actions,” said ADB Chief Economist Yasuyuki Sawada.

Regional cooperation is increasingly necessary to tackle a rising number of cross-border challenges in Asia and the Pacific, according to a new report from the Asian Development Bank (ADB).

The Asian Economic Integration Report 2018 (AEIR) says collective action to build regional public goods brings greater benefits than if countries work alone to address issues that also affect their neighbors.

Regional public goods are goods, services, and systems of policies or rules that have shared benefits across countries, such as cross-border infrastructure, communicable disease control, and disaster risk management.

“Enhanced regional cooperation and coordination can help countries manage regional issues, particularly if they complement national and global actions,” said ADB Chief Economist Yasuyuki Sawada. “Multilateral development banks can help increase regional public goods by reducing knowledge and financing gaps as well as promoting regular policy dialogue for long-term cooperation among countries.”

The report points to several efforts in Asia to establish and strengthen regional public goods. For example, the 2014 pledge by 18 Asian leaders to eliminate malaria by 2030 has spurred countries to work together to achieve the goal to the benefit of the entire region.

ADB’s Greater Mekong Subregion Health Security Project to help control communicable diseases in the Mekong region border areas is part of such efforts. Trade facilitation programs between countries in the Central Asia Regional Economic Cooperation region have boosted intraregional trade, supporting economic growth.

Asia’s intraregional trade—measured by value—rose to 57.8% of its total global trade in 2017 from 57.2% in 2016. The recovery in regional trade can be attributed to the expansion of global value chains after a slowdown since 2012. Intraregional foreign direct investment also increased slightly to US$260.0 billion in 2017 from US$254.7 billion in 2016.

Growing trade and investment linkages in Asia and the Pacific can be a buffer for the region against uncertainties in the global economy, the report says. However, it warns that uncertainty about trade policy could dampen the recovery in regional and global trade and damage consumer sentiment and business confidence in capital spending and investment.

The report notes that regional integration in Asia and the Pacific, as measured by ADB’s Asia-Pacific Regional Cooperation and Integration Index, or ARCII, increased modestly from 0.525 in 2015 to 0.530 in 2016, with a positive impact on economic growth and poverty reduction.

The index incorporates six sub-indexes that measure trade and investment, money and finance, the regional value chain, infrastructure and connectivity, movement of people, and institutional and social integration.

Dong Nai: 10-month FDI surpasses 60 percent of yearly target

The southern province of Dong Nai has drawn approximately 1.6 billion USD in foreign direct investment (FDI) as of October 23, 60 percent higher than the goal of 1 billion USD this year.

According to the provincial Department of Planning and Investment, the province has licensed 101 new FDI projects, worth a total 804 million USD, since the beginning of 2018 while 87 others have received additional funding of 790 million USD.

Among the newly-licensed are a 60-million-USD project by Singapore-based KCC Vietnam Co., Ltd and a 45-million-USD project by Samyang Vietnam Co., Ltd from the Republic of Korea at Nhon Trach 6 Industrial Park, and a 40-million-USD fabric manufacturing project by Hi Knit Co., Ltd from the RoK at Nhon Trach 6A Industrial Park.

Those with extra investment include the Bosch Gasoline Systems – HCP factory of the Netherlands at Long Thanh Industrial Park, the tyre factory by Japanese-based Kenda Rubber Industrial Co., Ltd at Giang Dien Industrial Park and the pharmaceutical project by OPV Pharmaceutical JSC from Singapore at Bien Hoa II Industrial Park, which got an additional 71 million USD, 56 million USD and 47.7 million USD, respectively.

Most of the projects are in supporting industries that are environmentally friendly with high technology.

Dong Nai has so far licensed 1,853 FDI projects with total registered investment of 33.4 billion USD, of which, 1,371 projects worth 28.3 billion USD are operational while the others had their licences withdrawn.

Topping the list of investors are those from the Republic of Korea, Taiwan (China) and Japan.

In 2017, the province attracted more than 1.3 billion USD in FDI, with the Republic of Korea the largest foreign investor. In recent years, it has prioritised environmentally friendly projects using high-technology and skilled labourers. –VNA 

Nine Vietnamese companies took part in Fashion World Tokyo 2018, which opened in Japan on October 22 and is considered the largest of its kind to date.

The three-day show has drawn the participation of 1,000 firms from 39 countries worldwide and is expected to attract hundreds of thousands of visitors. 

Nguyen Trong Phi – Chairman of the Board of Directors at Giovanni Group, a luxury Vietnamese fashion company – said that Vietnamese businesses are capable of producing apparel of the quality that could compete against those made by global brands.

Won-hea Jeong, head of Sejong Collection, lauded the quality of the Vietnamese products of display, saying he hopes to soon collaborate with brands from Vietnam. Sejong Collection is a Korean manufacturer and exporter of metal fittings for leather goods, bags, shoes, and garments.

Exporters in the field said while it is easy to find a made-in-Vietnam garment product in Japan, Vietnamese fashion brands are practically non-existent in this market.

However, Phi said he is confident that his company can win over Japanese customers, opening the way for Vietnamese fashion brands to enter the country, which is one of the leading fashion markets in Asia and the world.

Vietnam earned 22.6 billion USD from exports of textiles and garments in the first nine months of this year.

Kien Giang seeks to monitor fishing vessels

A seminar was held in the Mekong Delta province of Kien Giang on October 23 to discuss ways to manage and monitor fishing vessels. 

Each year, the province accounts for 16 percent of the country’s total seafood output and nearly 40 percent of the Mekong Delta region’s. In the first nine months of this year, its seafood volume was estimated at 432,729 tonnes, up over 7 percent year-on-year. 

Speaking at the event, Director of the provincial Department of Agriculture and Rural Development Nguyen Van Tam said that most local fishing vessels in Kien Giang have been equipped with very high-frequency and high-frequency systems. 

Vessels with engines of 90 horsepower and above have installed global positioning systems, fish finders, and remote control devices, while others with 400 horsepower engines have automatic identification systems, he said.

Every month, quarter, and year, the provincial Department of Fisheries partners with the district, communal, and municipal People’s Committees to update data on fishing vessels and report to the Directorate of Fisheries’ Information Management Centre regarding the registration of fishing vessels and local fishing licensing. 

The province is home to over 4,000 fishing vessels with lengths of 15m and above which still need to be equipped with journey monitoring equipment. The Ministry of Agriculture and Rural Development agreed to install Movimar equipment for about 600 fishing vessels with a length of 24m and above. 

The provincial Department of Agriculture and Rural Development offered suggestions to dealing with illegal fishing in line with the European Union’s regulations towards ending illegal, unreported, and unregulated (IUU) fishing. 

Accordingly, the Directorate of Fisheries needs to promptly issue guidelines on the parameters and technical standards for journey monitoring systems on fishing vessels. Meanwhile, the provincial People’s Committee should approve funding for the provincial Department of Agriculture and Rural Development’s measures to end illegal fishing and upgrade its VX 1700 coastal station. 

Provincial authorities were asked to allow eligible firms to pilot the installation of journey monitoring equipment on local offshore fishing vessels in November, and establish groups to inspect the technical standards and functions of the equipment during and after the pilot period. 

Ride-hailing app FastGo has officially launched its services in the southern provinces of Dong Nai and Binh Duong, continuing its expansion plan.

FastGo Vietnam’s General Director Nguyen Huu Tuat said Dong Nai and Binh Duong are adjacent to the southern largest economic hub of Ho Chi Minh City with high traffic and customers moving between cities. 

FastGo is available in all cities to help customers move safely, while reducing the number of empty passenger hubs, he said, adding that there are about 1,000 vehicles operating in these two provinces.

Launched in June, FastGo is a ride-hailing app developed by a Vietnamese company, and drivers pay 30,000 VND (1.3 USD) to FastGo if they earn more than 400,000 VND per day.

It has also committed to keep fares unchanged during peak periods, while offering regular promotions.

The app has started operations in three big cities of Hanoi, Da Nang and HCM City with more than 30,000 drivers and over one million kilometres successfully travelled so far.

FastGo received investment from VinaCapital in August and is mobilising capital in the second round of up to 50 million USD to expand its operations to other Southeast Asian countries including Indonesia and Myanmar.

FastGo plans to introduce services in Ha Long and Nha Trang cities at the beginning of November. Food delivery are planned for launch by the end of the year.

PHI Group buys majority interest in Saigon Pho Palace

Through the co-operation with Saigon Pho Palace JSC, PHI Group from the US will play an important role in Saigon Pho’s plans to capture 20-30 per cent in the $8 billion restaurant segment catering to wedding banquets and conventions.

On October 17, PHI Group, Inc., a diversified holding company from the US focused on mergers and acquisitions and investments in select industries, agriculture, and real estate, announced that the company signed an agreement to acquire a 51 per cent equity interest in Saigon Pho Palace JSC (SGP) and plans to pay for the transaction with Preferred Stock from PHI Group, Inc. or a promissory note that may be convertible into shares of a subsidiary of the company.

The amount of Preferred Stocks of PHI Group or the value of the convertible notes to be issued for the exchange of the equity interest in SGP will be based on the results of a valuation of SGP's business by a professional, independent appraisal firm.

SGP will also engage a PCAOB-registered accounting firm to audit its financial statements and expects to provide information about its operating results, according to Generally Accepted Accounting Principles (GAAP) within sixty days.

PHI will form a wholly-owned subsidiary as the special purpose vehicle to hold the majority interest in SGP and, subject to meeting all necessary compliance requirements, file a registration statement with the US Securities and Exchange Commission to take this subsidiary public in the US Stock Market in the future to create a platform for SGP's growth and expansion.

SGP Palace operates in the field of hospitality, construction, and real estate investment and is currently developing a number of prominent projects in Ho Chi Minh City and other locations in Vietnam.

It has been operating a chain of restaurants that cater to wedding banquets and convention events and plans to build 35 more restaurants by 2025. It is estimated that this market segment in Vietnam generates approximately $8 billion in revenue a year. In addition, SGP also has plans to build a new chain of 50 SGP Bulkoki restaurants by 2025 and 200 SGP X-N Coffee shops by 2027.

Quy Minh Le, chairman and general director of SGP Palace, stated, "We believe that with proper financial resources we would be able to capture 20-30 per cent of this $8 billion market in the next five to seven years and create very significant value for our shareholders."

Hanoi aims for more social housing by 2020

Hanoi’s property market will have more supply of social housing products for low-income people by 2020 in order to address the paucity of those products on the market combined with the over-supply of commercial houses.

Construction of the Thang Long Green City housing project started on October 14 in Kim Chung new urban area, Dong Anh district, Hanoi as a joint venture of the Hanoi Housing Development and Investment Corporation (Handico) and the Viglacera Corporation.

The Thang Long Green City with a total investment of 1.3 trillion VND (55.58 million USD) is expected to be completed by 2020, supplying 1,588 apartments for the market, meeting the demands of about 5,330 people.

This product is expected to have selling price of 12.6 million VND per square metre and rent at 50,000 VND per square metre per month.

In addition, Hanoi has some social housing projects under construction, including the Kien Hung - Ha Dong social housing project with 432 apartments and the AZ Thang Long social and commercial service complex in Lai Xa village, Kim Chung commune, Hoai Duc district with nearly 1,500 apartments.

As the city faces a shortage of apartments for low-income people, including workers, those projects are expected to add supply to the social housing fund of Hanoi, contributing to the social security of the capital city. This is also a part of the Government’s housing development strategy by 2020 and vision to 2030 as well as the city’s housing development plan during 2016-20.

According to those plans, the country needs accommodation for three million workers, low-income people and people with meritorious services to the revolution, including one million people in Hanoi.

However, since the 30 trillion VND housing stimulus package ended in 2016, the development of social housing projects in the country, including Hanoi, has been slowing down and some of the projects have had to shut down due to a lack of funds.

Hanoi now has nine social housing projects selling and leasing apartments while 25 projects are under construction and are expected to be complete by 2020. These projects are located in the districts of Thanh Xuan, Hoang Mai, Ha Dong, Nam Tu Liem, Long Bien, Gia Lam, Thanh Tri, Dong Anh, Me Linh and Hoai Duc, reported the Thoi bao Tai chinh Vietnam (Vietnam Financial Times) newspaper.

The nine social housing projects have not met the demands of the low-income people in the capital city.

Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Brokerage Association, said investment in social housing projects was not the first choice of many businesses, because the businesses could not gain many profits from these projects like commercial housing projects.

In addition, the social housing projects receive land tax incentives but those bring limits on the sale price and profit while the prices of construction materials and labour are not reduced, he said.

According to the Ministry of Construction, in the first half of this year, the programme of social housing development for low-income people in urban areas has completed 86 projects supplying about 34,700 apartments for the market. Meanwhile, the social housing development programme for industrial park workers has had 100 projects finishing construction with about 41,000 apartments. However, this supply has only partly met the demand for social housing in the domestic market.

Large room for Vietnam – Canada tourism cooperation to develop

Vietnam and Canada enjoy a large room for their tourism and travel companies to cooperate, with the 250,000-strong Vietnamese community living, working and studying in Canada serving as a bridge linking the two countries, watchers have said.

During the ongoing Montreal International Tourism and Travel Show which started on October 19, they further said that tourism development creates an important chance helping connect the enterprises now that Vietnam is Canada’s largest trade partner in the Association of Southeast Asian Nations (ASEAN).

Watchers also held that Vietnam is a dynamic and modern country with many attractions, having experienced changes but still kept its traditionality. They affirmed that coming to Vietnam, visitors will feel amused and surprised with the beauty of the land and people here.

This is the second time the Vietnamese Embassy has taken part in the Montreal International Tourism and Travel Show which attracted over 400 entities from about 100 countries all over the world. Publications distributed from Vietnam’s pavilion at the show brief visitors of the beauty of the country as well as its tourism potential and strength. The participation is described as helping improve Canadian visitors’ knowledge on Vietnam’s culture and open up many chances for the bilateral people-to-people exchanges.

A representative of the Hanh Travel company said many Canadian people want to visit Vietnam, and rated the country as the most excellent in Southeast Asia.

Tourism has been taken as one of the key economic sectors of Vietnam, and developing tourism is a strategic orientation. In the first eight months of this year, over 10.4 million foreigners visited Vietnam, an increase of 22.8 percent over the same period last year. However, the figure of tourists from Canada is still modest, only 104,057 in the first eight months of this year and 138,242 for the whole of last year.

Links key for animal husbandry

Better cooperation between farmers, businesses and buyers is improving product quality in the animal husbandry industry in Vietnam. 

Dr. Vo Trong Thanh, of the Animal Husbandry Department, said that over the last 10 years Vietnam had seen a 15 – 20 percent increase in output of animal products, an indication that the industry’s farming capability has improved.

Speaking at a recent conference on high-quality farming of animal products in HCM City, Thanh said that about 30 percent of animal farm facilities had switched to more industrial and professional methods.

In addition, favourable government policies, such as financial aid for land rental and equipment purchases, have encouraged animal husbandry development.

More firms such as Vissan, Dabaco and Vinamilk are working with farmers, providing high-quality animal feed, medicine, and advanced farming techniques to ensure quality and product traceability.

The companies’ distribution networks are also buying more products from farmers.

Dr. Michael Patching of Meat & Livestock Australia said that consumers today wanted consistently fresh and hygienic products from trustworthy sources, and were willing to pay more for such products.

Creating high-quality supply chains with product traceability is crucial to satisfying consumer demand for healthy food, said Nguyen Tri Cong, Director of Dong Hiep Service, Production and Processing Cooperative in Dong Nai province.

The cooperative helped farmers process and transport goods in a safe way, and connected them with buyers, he said.

Thanh said the ability to control supply and demand in the animal husbandry industry, however, was still limited, causing prices to often fluctuate.

Many farming and processing facilities still do not conform to health standards, and connections between firms and farmers need to be improved.

Competition from foreign goods and the threat of disease are also challenges for the industry to overcome.

Over the next 10 years, the number of professional farms is expected to increase, and the output of these farms is expected to account for 70-75 percent of all animal products, according to Thanh.  

Meanwhile, the number of small farming households is projected to fall by 5-7 percent annually.

The animal husbandry industry is striving for higher quality standards and increased domestic sales and exports to ASEAN, the Middle East, Japan, China and the Republic of Korea.

“Focusing on value chains is key to quick and sustainable growth of Vietnam’s animal husbandry,” Thanh said.

Cong called for more favourable policies that would promote advanced technologies and help farmers adhere to quality standards.

More trade promotion and networking events will also benefit farmers and increase sales, while improving public awareness to encourage consumption of produce with clear origin is also important, according to Cong.

During the conference, Meat & Livestock Australia signed a memorandum of understanding with the Animal Husbandry Association of Vietnam to develop the production and processing of chilled beef.

Dong Hiep Cooperative signed an MoU with pig farmers in Dong Nai, promising cooperation and purchasing.

Organised by Agritrade, Argotrade and Animal Husbandry Association of Vietnam, the conference was part of the 2018 Vietstock international exhibition, which is being held from Oct 17-19 to promote goods in animal husbandry, fishery, food processing and other industries.

Binh Phuoc farmers learn new techniques for cashew cultivation

Binh Phuoc province’s agricultural officials are helping cashew farmers learn new cultivation techniques because of losses incurred in recent years due to pests and inclement weather.

The southeastern province is the country’s largest producer of cashew.

The local authorities have provided farmer Dieu Choi, who has a 2ha cashew orchard in Bu Gia Map district’s Phu Nghia commune, pesticides and fertilisers to improve his yield.

In the last harvest season, he had a poor yield of 700 kilos of cashew.

Choi has learned how to fertilise cashew trees properly, and identify pests and spray pesticides.

“I’m following the instructions and hope I’ll have a better yield this year,” he said.

Choi’s orchard serves as a model for other agricultural officials in the commune.

Nguyen Van Huan, of Phu Nghia commune, said he had cut down grass and let it decompose to use as fertiliser for cashew trees.

In previous years, he had not pruned many tree branches because he was afraid it would affect yield. “This year I pruned many branches, cut down grass and did not spray herbicides,” he said.

Tran Dai Loi, Vice Chairman of the Phu Nghia commune People’s Committee, said the People’s Committee in cooperation with agencies has taught farmers how to prune branches, spray pesticides and fertilise plants properly.

Binh Phuoc has more than 71,000 households that cultivate 145,000ha of cashew. Most of the farmers are ethnic minorities.

The province plans to replace 25,000ha of old cashew trees from now to 2020.  

Mosquito bugs (an insect that looks like a mosquito) and pests called trunk and root borers have caused damage to the trees. 

The province has more than 2,400ha of cashew trees which need to be replaced this year because of old age and diseases, according to the province’s Department of Agriculture and Rural Development.

Of the figure, Bu Dang district accounts for more than 1,000ha, and Bu Gia Map district, more than 900ha.  

Nong Van May, who has a 8,000 sq.m cashew orchard in Bu Dang district’s Dang Ha commune, said he had cut down half of his cashew trees because the trunk and root borers had damaged his plants.    

Over the past two years, he has had a poor harvest of about 200 kilos of fresh cashew nuts a year. In previous years, the harvest was 600-700 kilos a year.

In Bu Gia Map Map district, agricultural officials have selected about 70 cashew orchards to participate in the district’s programme to upgrade cashew orchards.

HCM City eyes ornamental fish breeding

Ornamental fish farming is among the segments HCM City targets to develop with the aim of boosting the whole agricultural sector.

In the first nine months of this year, over 15 million fish were exported for 17 million USD, up 14 percent and 15 percent year-on-year, respectively.

In the last quarter, the city plans to export five million fish for 6 million USD.

Exports have risen sharply since 2015 when only 13 million fish were exported for 12 million USD.

Last year, at 18.2 million USD, they accounted for 13.2 percent of the city’s total agricultural exports.

The municipal Department of Agriculture and Rural Development reported there are about 290 farms breeding​ ornamental fish on a total area of 88.9ha.

They raise 60 freshwater fishes, including 40 hybrid varieties.

Thoi Bao Kinh Te Việt Nam (Vietnam Economic Times) newspaper reported that 21 city companies export ornamental fish by air, the biggest being Sai Gon Ornamental Fish Joint Stock Company.

They export to 43 countries and territories, with the EU being the biggest market, buying slightly more than half of all exports.

To develop the industry, the city has undertaken many programmes, including setting up a model under which participating companies have to properly manage their breeding.

They have to comply with requirements for controlling risks, preventing fish from contracting diseases, reducing the impacts of climatic conditions, and improving their fish-raising skills.

Thanks to this, the breeders have been able to improve quality, raising the profile of the Vietnamese ornamental fish industry.

As of June, seven farms had joined the programme.

But the industry also faces certain challenges.

The fish bred in the city are small in size and most farms lack proper infrastructure and raise the fish using traditional techniques.

A lack of research activities means there are no unique products introduced to the market.

Long An province works to attract quality investments

Long An province, located in the southern key economic region, has reaped encouraging outcomes in investment attraction, and it will press on with concrete solutions to attract more quality projects in the time ahead, authorities said.

Long An has set up cooperative relations with foreign localities like Hyogo prefecture of Japan, Chungcheongnam-do province of the Republic of Korea, and Sacramento city of the US. It has also attracted many major investors, including the Vietnam-Singapore Industrial Park JV Co. Ltd of Singapore, Sojitz of Japan, and local conglomerate Vingroup.

The province is now home to more than 1,500 Vietnamese projects worth over 181 trillion VND (7.75 billion USD) and 941 FDI ones with total capital of nearly 6 billion USD, according to the provincial Department of Planning and Investment.

Aside from attracting investment, local authorities have also increased examining sluggish projects. As of early October, they revoked 11 foreign invested projects worth 40 million USD and 29 domestic ones worth almost 1.9 trillion VND (81.4 million USD), citing investors’ lack of capacity.

Director of the department Nguyen Van Tieu said despite certain successes in investment attraction, the quality of many projects is not high. Most of them are small- or medium-sized, with capital of about 136 billion VND (5.8 million USD) per domestic project and 5.2 billion USD per FDI project. They focus on labour-intensive industries such as textile-garment and footwear, and few have specialised in supporting and hi-tech industries.

He said to attract more quality investments, local authorities will boost administrative reforms to create favourable conditions for investors to implement their projects.

Aside from strictly dealing with projects with slow implementation, they will also accelerate developing infrastructure, especially transport facilities and seaports.

Long An will step up investment promotion in suitable forms and prioritise major projects that are environmentally friendly and have high added value, Tieu noted, adding that authorities will also maintain dialogue with businesses to tackle obstacles to their activities in a timely manner. 

HCM City rental yields down

Apartment rental yields in Ho Chi Minh City have declined slightly due to excessive supply, property consultancies said.

In a report on the real-estate market in the second and third quarters, CBRE reported that the ratio is down in some areas since rents are below landlords’ expectations.

Duong Thuy Dung, senior director at CBRE Vietnam, told the English-language newspaper of Vietnam News Agency - Viet Nam News that the downtrend in yields started at the beginning of this year after a huge number of condos were handed over to buyers.

Furthermore, some condos do not have the quality their developers had promised, another reason for falling rentals, according to Dung.

From 7-7.5 percent they have now fallen to 6-6.5 percent though some high-quality places in District 2 and elsewhere still fetch 7 percent.

She said while condo prices had not decreased, many landlords cut their rents to quickly find tenants amid the increasing competition, adding that the 6-6.5 per cent rate would continue in the near future.

Savills Vietnam also said yields had fallen, but put the current rate at an even lower 4-6 percent.

Vo Thi Khanh Trang, head of research at Savills Vietnam, told Viet Nam News that condos were the main competition for serviced apartments.

Condos in districts like 2, 4 and 7 with comprehensive amenities and services are the most attractive areas for renters, according to Trang.

A report by Savills says there has been a huge supply of condos in 2015-18, with grade A and B condos increasing by 68 percent a year.

Speaking about the trend in the near future, the report says until 2020 there will continue to be a huge supply of apartments. 

But the market is still potential thanks to HCM City’s stable economy and huge foreign interest, it says.

According to Jones Lang LaSalle, the high-end rental segment is more popular in the city thanks to the location, construction quality and amenities of apartments in it.

The number of high-end apartments put for rent as of the third quarter of this year was 27,255, it said. 

Stephen Wyatt, country head of JLL, said 30-35 percent of them could be buy-to-let deals.

In the year to date the market saw the entry of 5,320 new units in 10 high-end projects in districts 1, 2, 4, Binh Thanh, and Phu Nhuan.   

The average rent for these are expected to reach 122 USD per square metre per annum (10.1 USD per month) by the end of this year. 

In 2019-21 a downward trend on a chain-linked basis is expected in line with the increased competition from the vast supply, especially as large projects with a monotonous design do not seem to attract expats while demand from local renters in the high-end segment is low, according to Wyatt. 

The rental market is likely to plateau or even soften, with longer vacancy times, due to the considerably increasing supply. 

Rental growth will also be negative in degraded and/or increasingly inferior older properties. 

But the completion of ongoing projects with better locations and higher quality are expected to offset this downward trend.

Workshop highlights untapped potential of Vietnam-EAEU FTA

The implementation of the Free Trade Agreement (FTA) between the Eurasia Economic Union (EAEU) and Vietnam over the last two years was reviewed at a workshop in Moscow, Russia on October 19. 

Jointly held by the Vietnamese Embassy in Russia and the Institute of Economics at the Russian Academy of Sciences, the event brought together over 60 delegates who are officials, experts, scholars and researchers from many ministries and agencies of Russia and Vietnam. 

In his opening remarks, Ambassador Ngo Duc Manh said after two years implementing the FTA, the trade turnover between Vietnam and member counties of the EAEU has recorded strong growth, from 3.04 billion USD in 2016 to 3.9 billion USD in 2017. 

Participants to the workshop examined the impact of the agreement’s implementation on trade ties between Vietnam and EAEU member nations in general and with Russia in particular; and looked into difficulties and challenges facing Vietnamese enterprises when entering the EAEU market. 

They also analyzed the shortcomings and limitations that need to be addressed in implementing the FTA and proposed solutions to them. 

The participants agreed that despite the good growth in trade, potential of the FTA is yet to be fully tapped, saying that more efforts should be done to effectively exploit the advantages brought by this agreement.

According to Le Truong Son, President of the Association of Vietnamese Businesses in Russia, despite the huge tax reduction schedule, non-tariff barriers remain unchanged. Therefore, he noted that Vietnamese enterprises must study and develop suitable distribution models for their products.

Discussing steps to increase bilateral trade between Vietnam and EAEU in the near future, Director of the  Vietnam-ASEAN Research Centre under the Far East Institute (Russia's Science Academy) Vladimir Mazyrin said the two sides should take measures to reduce costs of products, increase the competitiveness of goods, make better use of tariff preferences, and improve the method of payment and transportation. 

The Vietnam-EAEU FTA was signed on May 29, 2015 between Vietnam and five EAEU countries, including Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan. It took effect on October 5, 2016. The agreement contributes to boosting economic development in each country, and promoting bilateral trade, services and investment, and expanding cooperation in the region.

Master plan for Nhon Hoi Economic Zone to 2040 to be adjusted

Prime Minister Nguyen Xuan Phuc has issued a decision approving the task of adjusting the master plan for the construction of Nhon Hoi Economic Zone in the south central province of Binh Dinh towards 2040, with an aim to make it a driving force for the locality’s growth.

Under the decision, the Nhon Hoi Economic Zone will cover about 14,308 hectares in 2040, with an industrial area of about 12,000 hectares and a Becamex Binh Dinh industrial-urban-service area of 2,308 hectares.

The objectives of the plan is to make the construction of the zone suitable to the national development strategy as well as the maritime development strategy, while turning the Nhon Hoi Economic Zone into a dynamic and sustainable economic hub.

The zone is expected to become a centre for tourism, service, urban, industry, port and traditional sea-base economy, ensuring both economic growth and security-defence.

In the coming time, the major tasks of the plan include making researches, surveys and statistics summarising and analyzing the current conditions of the Nhon Hoi Economic Zone, as well as evaluating the socio-economic growth of the zone and the whole country over the past year and giving forecast for the future.

The tasks also include sketching out the development targets and orientations of the zone until 2040, reviewing the master plan 2005 and the reality in Nhon Hoi Economic Zone, thus adding a number of missing contents such as urban design, strategic environment evaluation, climate change and sea level rise response, public transport, underground space and urban lighting.

Tien Giang develops saltwater, brackish-water aquaculture

Saltwater and brackish-water aquaculture production in coastal areas in the Mekong Delta province of Tien Giang has improved farmers’ incomes in the last 10 years under a national marine strategy.

With its 32km of coast, the province has 9,750ha of saltwater and brackish water aquaculture, mostly in Go Cong town, Go Cong Dong, Go Cong Tay and Tan Phu Dong districts, according to the province’s Department of Agriculture and Rural Development.

Nguyen Van Danh, Secretary of the province’s Party Committee, said the area of saltwater and brackish water aquaculture in coastal areas had increased by 2.7 times compared to 2008.

The annual output of saltwater and brackish water aquaculture -- mostly shrimps and clams -- reaches over 43,000 tonnes.

After 10 years of implementing the Vietnam marine strategy towards 2020 in the province, Tien Giang has developed infrastructure to serve aquaculture production in Go Cong town, Go Cong Dong, Go Cong Tay and Tan Phu Dong districts.       

The province’s agriculture department has improved fishery extension activities and provided advanced technologies to farmers, including techniques to produce shrimp and clams.

The department’s Agriculture Extension Centre has set up breeding models for clean black-tiger shrimp, white-legged shrimp, tilapia and other aquatic species for farmers to visit and learn.

Tran Quang Thanh in Go Cong Dong district’s Kieng Phuoc commune has turned his two hectares of low-yielding paddy field into a coastal area for breeding black-tiger shrimp and white-legged shrimp.

He harvests an average of 10 tonnes of shrimp a year and earns a profit of about 700 million VND (30,000 USD).

Go Cong Dong district authorities have encouraged farmers to breed shrimp in areas which are near river mouths, and inside sea dykes and saltwater-affected areas.

The district has zoned nearly 2,000 alluvial grounds for breeding clams, with annual output of 20,000 tonnes. The clams are either sold domestically or processed for export.

Nguyen Van Ba, who has three hectares of black-tiger shrimp in Tan Phu Dong district’s Phú Tân Commune, said he had switched from breeding black-tiger shrimp to an industrial farming model and was now breeding white-legged shrimp.

“The profits from breeding shrimp have been stable in recent years because of the use of advanced farming techniques,” he said.

Tran Cong Danh, Deputy Chairman of the Phu Tan commune People’s Committee, said farmers could earn a profit of 20 million VND (850 USD) per ha per crop from extensive shrimp farming and 200 million VND (8,500 USD) per ha per crop from industrial farming.

Besides expanding aquaculture areas, the province has also developed a fleet of 1,400 fishing boats with more than 9,800 fishermen, according to its agriculture department.

The Vam Lang seafood processing industrial cluster and logistics services have both contributed to the development of the sea-based economy.

More than 300 vessels provide logistics services for vessels operating offshore.

Also, Tien Giang has invested in a system of My Tho and Vam Lang ports, to handle the catches.

It has also built a storm shelter at the mouth of the Soai Rap River that can accommodate 350 fishing vessels.

In the first nine months of the year, the province exported more than 250 million USD of seafood. Its seafood is exported to more than 100 countries and territories, including the US, Spain and China.